Fratelli Vineyards Ltd — Updates, 06-06-2025: Company Update

Fratelli Vineyards Limited has announced a board meeting to discuss the financial results for the quarter and half-year. The company reported INR182 Cr revenue in FY'25, with 73% from premium and luxury wines. Despite a 13% volume decline due to policy disruptions and supply chain transitions, gross margins improved 200 bps. EBITDA was impacted by higher brand-building investments and one-time expenses related to product upgrades and new launches like Shotgun, an RTD product targeting younger consumers. The expanded production capacity of 5.4 million liters supports growth, with plans to scale TiLT (wine-in-a-can) and Shotgun aggressively across India, including Tier 2/3 markets. Fratelli is also deepening consumer engagement through partnerships like Blue Tokai’s Pour Room and marquee events. The company targets ~20-25% top-line growth in FY'26, driven by premiumization, innovation, and operating leverage, with branded investments expected to stabilize. Vineyard expansion with a 3-year yield timeline is underway, supported by INR15 Cr capex this year. Net borrowings of ~INR100 Cr carry an average 10% cost. Fratelli remains confident in sustaining leadership amid growing domestic wine demand and FTA provisions protecting its market position against imports.